The Real Estate Development and Regulation Bill

The Real Estate Development and Regulation Bill   @atulaynehra

“Common Man” is the most commonly and recently coined term that has been used time and again in last one decade. Atleast when it comes to exploitation of right and duties of a common man in various spheres of life. One such important aspect of anybody’s life is ownership of a real estate – and when it comes to real estate, most of the people may or may not be interested in the topic altogether due to the cobweb intricacies that are involved when someone have to deal with .

Given the facts that the economy has major contribution from the real estate and building industry which does not have any specific guidelines to control the menace by the businesses involved, and for the benefit of the Common man – On the June 4^th 2013 , the much awaited draft of the bill regulating real estate and building industry was approved by the Union Cabinet.

There has been some noteworthy provision that has been proposed, though some of those have created a ruckus within the entire builder lobby. As a business model across India the developers use to pay a small amount for the land followed by launching the project and marketing it to the prospective buyers. As a result the project get’s funded from the money that has been collected from the prospective buyers. With this all the risks involved in delay of project due to permissions , approvals or any litigation's etc directly passed on to the buyer, making them to suffer excessively. Now the above will become a thing of past if the provision of NOT Selling and promoting till all the approvals which are required for completion of the project are received. This provision if opted will restrict developers will not be able to market or sell any project without 100 percent approvals.

The above provision also restricts the developers to divert money from one project to any other or for any other purpose.

There has always been and ambiguity in terms of the area being defined as super area and covered area , where in carpet area was always a mystery, the real estate regulation and development bill on other hand will bring in standardization in the industry introducing definitions to apartment, carpet area, common area etc

The bill in addition to above also fulfills the demand of having an independent dispute resolution judicial mechanism to resolve the issues between builder, developer and the investors. Having such Tribunal in place will be a relief for all those investors, flat purchasers, housing societies who has been in pain all ways when it came to resolution.

  

The bill although has a long way to go to be considered as a law, we hope this is would soon be approved and come in force.